Quick Glance Test Questions Flashcards
1
Q
Which tax lien is superior?
A
Property tax lien January 1, 2013
2
Q
What fees does the buyer pay at closing?
A
Attorney Fee & Deed Recording
3
Q
There are only three brokers in the town of Agartha. They make a decision to only accept offers, which pay a commission of 7.2%. Is this allowed?
A
No, this is illegal under the Sherman-Clayton act
4
Q
To mix your personal funds with escrow funds would be?
A
Commingle
5
Q
The tenancy that is characterized by Right-of-Survivorship is what
A
Joint Tenancy
6
Q
If a broker is selling a mans’ home for $75,000, but the seller tells the broker in private that he will accept 72,000 for the home, is the broker obligated to tell the buyer this?
A
The broker cannot disclose this to the buyer
7
Q
Which rights are characterized by private ownership along a river or stream and includes access rights to water, boating, or dockage
A
Riparian
8
Q
A Package Mortgage covers which type of property
A
Chattel and Real
9
Q
A landlord has how many days to make a claim on a deposit?
A
30 days
10
Q
A man owned a piece of property before he got married. Now, even though he is married, that property is still considered what?
A
Separate
11
Q
What does NOT classifies a joint tenancy?
A
contract
12
Q
When is a deed considered to be transferred?
A
When the deed is signed and delivered by a grantor
13
Q
What easement benefits a water company maintaining rights to lay pipes along your property line?
A
Gross
14
Q
This body regulates state-certified and registered trainee appraisers
A
Florida Real Estate Appraisal Board - FREAB
15
Q
Rights that are characterized by rights relating to land abutting an ocean or lake?
A
Littoral
16
Q
The rights of a property are held by the lender under the what theory
A
Title
17
Q
If a seller wishes to sell their home for 92,000, but market value lists the property at 102,500, is the Broker obligated to tell the seller of the true market value.
A
Yes, the broker is obligated
18
Q
Is Mortgage interest deductible from the federal income tax
A
Yes
19
Q
An act, promise, love, obligation, or money in exchange for something else is what
A
Consideration
20
Q
You don’t need a real estate license to sell cemetery lots, an attorney-client relationship, or if acting as a salaried employee, with no commission
A
You do need a license to auction farmland
21
Q
Is a kickback legal if you are receiving it from someone NOT licensed in your field
A
Yes choose longest answer
22
Q
If Joey is ruled unfit or incompetent by the court, which deed will be used to determine what happens to his assets
A
Committee deed
23
Q
The statute dealing with the regulations of the Department Business Professional Relations?
A
455
24
Q
Why is a home equity loan more popular than most other loans?
A
It has a lower interest rate
25
How many square feet in an acre
43,560
26
An article attached by a commercial tenant as a part of the tenants trade or business and is personal property
A trade fixture
27
When May an agent begin working and operating
After they register with a broker and that broker submits them to the DBPR
28
Bob owns 3/4 of an acre of land and wishes to build a home there. However, local requirements state that any new homes built on a full acre of land. What does the owner needed to obtain in order to build their home on the 3/4 acre land?
Variance
29
If a man owns 958,320 sq ft of property how many acres does he own?
22 acres
30
What may the FREC issue in response to an agent committing a minor offense?
Notice of Non-Compliance
31
A discount rate is charged to member banks of the Federal Reserve for doing what?
Borrowing from the Federal Reserve
32
Which mortgage is classified by a balloon payment at the end?
Partially Amortized
33
A clause in which the lender requires the entire debt due and payable if a promise in the contract is not fulfilled is what?
Acceleration Clause
34
If bob owns section 7 and sells the wWest half of the NW quarter of section 7, how many acres does Bob sell?
80
35
The Statute of Frauds deals with whether contracts are?
In Writing and Signed
36
Which of the following is NOT a concept regarding escrow accounts
Brokers do not need signatory on the escrow account.
37
A property line at North 90 degrees East runs in which direction?
East to West
38
If a sales associate takes original records from a Brokers office he/she may (be)?
Guilty of Larceny
39
Substitution of a new party and/or new terms to an existing obligation?
Novation
40
A buyer presents an offer. The seller rejects the offer, but presents a counter offer dead. What does the seller need for the new terms and price to be established?
Approval from the buyer
41
Members of city planning commissions are usually?
Appointed
42
A property owner who does not reside on the property and relies on another to look after the property because they live too far away to handle it themselves?
An absentee owner
43
If there is no trade name what must be displayed on the exterior or interior of the entrance to a broker's principal office
Brokers' name, the words "Licensed Real Estate Broker"
44
If a bathtub were to be installed into a home, making it real property, what is this called?
A fixture
45
Homes built prior to 1978 requires what?
A disclosure of lead based paint
46
If an owner of a property dies with no will or heirs, what allows the government, usually a state government, to gain possession of the property?
Escheat
47
This law requires appraisers, real estate brokers, and sales associates to abide by a set of guidelines when providing any appraisal services
Uniform Standards of Professional Appraisal Practices - USPAP
48
Which easement benefits an adjacent parcel of land that allows someone to use their neighbor's property to access their own?
Appurtenant
49
Which of the following is NOT a private restriction?
Police power
50
If a woman's salary is based on her work helping to sell and lease new homes and she does not receive any additional commission does she need a active real estate license
She does not need a real estate license because she is a salaried employee
51
Who is Debited and will be credited on a property tax proration
Debit seller and credit buyer
52
Section 33 is north of
Section 4
53
Joey's home is assessed at $90,000 and he already has homesteaded his property by January 1. He serve the military for four years and in an unrelated incident became permanently handicap upon returning from service how much is Joy exempt from paying on property taxes
$50,500
54
If you have a four story storage facility with a total of 4000 ft.² and each floor is occupied by an elevator shop that occupies 20% of the entire floor how many 50 square-foot storage units can you fit in the entire building
64 units in the entire building
55
If Brian agrees to pay all of the property taxes on the $100,000 purchase price of his new home but does not agree to pay the docs them taxes of his $89,000 mortgage how much Brian owe in taxes
$700
56
One of the most common types of ownership for people who are not married is the?
Tenants in common
57
Statute that deals with FREC & administrative code in relation to business profession?
Ch 61j2
58
Who is allowed to submit a broker price opinion (bpo)
Only a broker
59
The making and acceptance of an offer by both parties is referred to as?
Mutual Assent
60
If a broker fails to notify a buyer of a $12,000 stipulation in a blanket mortgage, in which releases a particular parcel from the blanket mortgage, who broke the law and what law did they break
The broker violated F.S chapter 475
61
A buyers agreement with a broker is referred to as what
Buyer brokerage agreement
62
Our entertainment expenses refundable
No
63
Which of the following is comprised of professional associations and trade organizations that promote ethics and education in the Real estate industry
The national Association of realtors – NAR
64
A summary of what was found in a title search is the _____
Abstract of title
65
The intangible, legal bundle of rights inherent in the ownership of property is the what
Title
66
Attending an official FREC meeting will count for ________ hours of continuing education
3 hours
67
If homeowners association disclosure must have?
a discloser summary of all taxes to be paid, a list of any restrictive covenants, a list of any assessments that may be imposed by the association.
68
A North/south line and a west/east line it's called what in the government survey system
Principal meridian and baseline
69
The best way to describe single – family property in a subdivision is by what sort of method
Lots and blocks
70
What can a sales associate do is they don't agree with the real estate guidelines and wishes to review them
Petition before the FREC
71
A man who owns the NW 1/4 of the SE 1/4 of the NE 1/4 of the SW 1/4 of section 11 owns how many acres and how many sq feet
Less than 5 acres and 108,900 ft.²
72
A lead-based paint disclosure is not required in which of the following types of real estate
Commercial
73
Regulation Z requires what type of the disclosure summary
Annual percentage rate apr
74
What type of relationship requires a disclosure to be made before showing the property
No brokerage
75
Homestead property is restricted to how many acres outside of a City and how many acres within
160 acres outside / 1/2 acre inside
76
Which Florida brokerage relationship is automatically assumed if no other relationship is disclosed
Transaction
77
Riparian rights and littoral rights are?
Surface rights
78
A broker must request a written verification receipt of the deposit of escrow funds from a title company within how many days of the deposit being made and by which method
No later than 10 business days after the deposit is due / in writing
79
If a sales associate is aware of a cloud in the title, but neglected to inform the purchaser of the cloud, this cloud could be considered?
Misinterpretation
80
A real estate licensee who prepared a sale contract its indicate what on the purchase and sale agreement?
Name of the title company, address, phone number
81
Using someone else's money such as a banks to make an investment is called
Leverage
82
Bob left home for a weekend in the summer to visit family upon returning home discarded that is neighbor Jim have build a porch that extended 6 inch is over his property line. What is the proper terminology for this situation in relation to Jim's actions on Bob's property
Encroachment
83
Who is allowed to place ads when advertising real estate
The licensee with the broker's approval
84
What is the most common and effective for me used by the Federal Reserve for implementing monetary policy
Open market operations
85
What is the maximum time for which your license maybe suspended
10 years
86
If Bob just passes real estate sales associate Suzanne and receive his license in the mail which of the following two dates could be present as related to the expiration date listed on the license
March 31/September 30
87
What type of contract is a parole contract
Informal
88
What fee is charged per year to brokers for new and renew licenses to help replenish the Florida real estate recovery fund
$3.50
89
Which of the following ways is NOT a way to determine a fixture.
Disposition
90
What township is one tier south of R3W & T2N?
R3W and T1N
91
If bob does not have a real estate license, what can he not do?
a. Show property
b. Answer detailed questions about the property
c. Attempt to sale the property himself.
d. All of the above.
92
Sales Associate License
The first license you obtain
93
Brokers License
After being active under a broker for 2 years you can complete the Broker's course and sit for the brokers exam.
94
Broker Associate
A broker who chooses to continue working under another broker
95
Owner Developer
An entity who owns and sells his property only.
96
Subdivision Plat Map
This is what a builder has to supply to the planning board before receiving permits to build.
97
USPAP
Uniform standards of Professional Appraisal Practices= Guidelines to follow when providing appraisal services.
98
FREAB
Florida Real Estate Board= Regulates Appraisers
Appraisers charge a fee bases on the time and difficulty of the work. Appraisers are not paid a commission to reduce the possibility of a conflict of interest.
99
FRELC has entered mutual recognition with eight states:
Alabama, Arkansas, Connecticut, Georgia, Illinois, Mississippi, Nebraska and Oklahoma.
100
Course one consist of
60 hours of instructions plus 3 hours for an end of course examination. The end-of-course examination consist of 100 questions worth 1 point each and is normal organized with 45 questions on principle practices, 45 questions on real estate law and 10 math questions.
101
Sales associates are required to successfully complete what?
45 hour post licensing requirement and 14 hours of continuing education during every 2 year license period after that.
102
Broker applicants must complete?
69 hours of instruction plus 3 hours for the end of course examination.
103
Real estate service includes
Any real estate activity involving compensation for performing the service for another.
104
A BAR SALE.. (8 services of Real Estate)
```
A- Advertise real estate services
B- Buy
A- Appraise
R- Rent or provide rental information or lists
S- Sell
A- Auction
L- Lease
E- Exchange
```
105
Property owners and salaries employees of business entities are?
Exempt from having a real estate license.
106
Chapter 475 F.S. exempts?
individuals selling cemetery lots and attorney-client relationship
107
FREC members?
Do not receive salary, in lieu are paid $50 per day for each day they attend an official meeting.
108
License renewal period
All real estate licenses are issued with an expiration date of either March 31 or September 31
109
Armed forces exemption
members of the U.S armed forces exempt from the renewal provisions during the licensee's period of active duty and six months after discharge from active duty.
110
Voluntarily inactive
A licensee who has qualifies for a real estate license but who voluntarily choses not to engage in the real estate business during a give period and request such changes.
111
If a licensee fails to renew an active or voluntary inactive license before the expiration?
The license reverts automatically to involuntary inactive status.
112
If your license is suspended, the license is prevented from working for a period of time, max suspension?
Max 10 years
113
Multiple Licenses
A broker who holds more than one Florida broker license
114
Group Licenses
sales associates or broker associates who are registered under an owner-developer. An owner developer may own properties in the names of various entities.
115
Principal
A person who delegates authority to another agent: A person entrusted with another's business is authorized to represent and act for the principal.
116
Fiduciary
Acts in a position of trust or confidence for another. The fiduciary owes complete allegiance to the principal.
117
A Transaction brokers
Is a broker who provides limited representation to a buyer, a seller or both in a real estate transaction, but who does not represent either part in a fiduciary capacity or as a single agent.
118
The Florida real estate license law defines a single agent as a broker who
Represents, as a fiduciary, either the buyer or the seller, but not both, in the same transaction.
119
A Real estate licensee working in a no brokerage relationship capacity with a buyer or seller has the following three duties
- Deal honestly and fairly
- Disclose all known facts that materially affect the value that are not readily observable to the buyer
- Account for all funds entrusted to the license
120
To gains the principles written consent to a change in relationship, the buyer and/or seller must either sign or initial the..?
Consent to transition to transaction broker notice.
121
Misrepresentation
is the misstatement of fact of the omission or concealment of a factual matter.
122
The following 4 elements that can lead to action for fraud
1. A licensee made a misstatement or failed to disclose a material fact.
2. The licensee either knew or should have known that the statement was not accurate.
3. The party to whom the statement was made relied on the misstatement
4. The party to who the statement was made was damaged as a result.
123
Sales associates are not permitted to?
Open offices of their own.
124
Sales associates must
Be registered from work out an office maintained and registered in the name of their employer.
125
Advertisement must clearly reveal the licensed name of the brokerage firm. Advertisements that fail to disclose the license name of the brokerage firm are..
Blind advertisement or a Blind Ad
126
Real estate brokers must display these three things on an official sign
1. Trade Name
2. Broker's Name
3. The words "Licensed Real Estate Broker or "Lic Real Estate Broker"
127
Sales associates who receiver a binder deposit from a customer or principal must deliver it to their broker-employer immediately, which means no later than the end of the next..?
Business Day
128
To commingle
Is mixing a customers money with your money
129
Conversion
Is the unauthorized control or use of another person's personal property
130
If a broker who maintains an escrow account receives conflicting demand on escrow property, the broker must notify FREC..?
In writing within 15 days of receiving the conflicting demands unless specifically exempted.
131
Four Settlement Procedures
Mediation, Arbitration, Escrow Disbursement Order, Litigation
132
Mediation
Non-Binding
133
Arbitration
Binding (Third party makes the binding decision ) Litigation- Lawsuit filed by disputing party so the matter can be resolved in court.
134
Escrow Disbursement Order
A broker may request that the FREC issue an EDO determining who is entitled to the disputed funds.
135
Litigation
Court and interpleader is involved
136
Federal Anti-Trust Laws:
Sherman-Clayton Act & the Federal Trade Commission acts preserve competition and ensure restraint of trade (under these laws, you may not fix commission rates)
137
Kickbacks
unearned feeds paid to a licensed associate with a real estate transaction for non-real-estate services. Kickbacks are legal if it is coming from an unlicensed company, such as the lawn company.
138
Legal
Received from someone who does not have a state issued license. Received from someone who has a license in a field that you too are licensed in.
139
Illegal
Received from someone who has a license in a field that you are not licensed in.
140
Ostensible Partnership (Quasi-Partnership)
The appearance of a partnership. It is considered fraudulent. Brokers, who share an office building, must display separate signs and use separate telephone numbers.
141
7 Steps of the complaint process
1. Complaint is filed
2. Investigation of the complaint
3. Probable cause determination
4. Formal Complaint is filed if probable cause is found.
5. Informal hearing or formal hearing is conducted
6. Final order is issued
7. Judicial review
142
The most severe penalty that FRELC is authorized to impose is..?
revocation of license, revocation is permanent.
143
The commission may imposed an administrative penalty for violations of the law or rules and regulations:
Denial of application, refusal to rectify a license for renewal and revocation of a license for not more than 10 years. Fines may not exceed more than 5,000 for each separate violation.
144
The courts may enforce civil penalties if...?
A person has performed any real estate services without a license, the DBPR can issue up to $5000.
145
A violation of F.S 475 or any lawful order, rule or regulation is legally a misdemeanor of the second.
It may be punished by a fine of not more than $500 and/or by imprisonment for not more than 60 days.
146
The penalty for failing to provide accurate and current rental information, for a fee is..?
is a first-degree misdemeanor and is a fine of not more than $1000 and or up to one year in jail.
147
Monetary limits of the claim
50,000 for one transaction no more than 150,000 for more than one transaction
148
Fraud
The intentional deceit for the purpose of inducing another to rely on information to part with some valuable asset or legal right.
149
The Civil Rights Act 1866
Prohibits discrimination based on race
150
The fair Housing Act
Created to protect classes of people and prohibits the discrimination when selling or renting residential property when based on the following: Race, Color, Religion, Sex, Handicap Status, Familial Status, National Origins. The Fair housing act covers single/multi family housing. (Does not Include AGE)
151
Equal credit opportunity act
Ensues credit be maid available with fairness without discrimination to: Race, Color, Religion, National Origin, Sex, Marital Status, Age, Or income from assistance programs.
152
Steering
Is the channeling of homeowners away from particular neighborhoods because they are of a protected class
153
Blockbusting
Is to use the entry, or rumor of entry, of a protected class into a neighborhood to persuade owners to sell.
154
Redlining
Is to deny loans or insurance coverage by a lender or insurer that presents different terms or conditions for homes in certain neighborhoods.
155
Concurrency Provision
Growth management act requires the infrastructure to be in place before new development can begin.
156
Landlords have ___ days to return the security deposit and and any accrued interest if appliance, provided the landlord does not intend to make a claim on the security deposit
15
157
The landlord has __ days to notify the tenant if the landlord intends to impose a claim on the deposit.
30
158
A landlord has ___ days to correct the non compliance and resolve a problem.
7
159
Riparian Rights
Associated with land abutting the banks of a RIVER or stream
160
Littoral Rights
Associated with land abutting LAKE or LARGE BODY OF WATER
161
Fee Simple Estate
Means absolutely and complete ownership, subject only to governmental restrictions.
162
Life Estates
Life estate owners owns the property for only the period of the lifetime of the individual. When the life estate ends, the property returns to the original grantor or goes to a third party called the Remainderman.
163
Tenancy at Will
A lease agreement that has a beginning date, but no fixed termination date, is known, as tenancy at will.
164
Tenancy at Sufferance
When a tenant stays in a possession of the property beyond the ending date, it is known as tenancy at sufferance.
165
Tenants in common
When two or more persons wish to share the ownership of a single property, they may choose to do so as tenants in common.
166
Joint Tenancy
Is characterized by the right of survivorship, the surviving co-owner receives a share of the deceased tenants rights.
167
Tenancy by the Entireties
Is a joint tenancy between husband and wife.
168
Non- Marital assests
Are separate property and include any property the husband or the wife owned separately prior to marriage.
169
Florida law provides for the divorcing couple's assets to be divided
Equally
170
Co-Op
The important result of the stock purchase is that ownership of the stock entitles the purchaser to a proprietary lease and the right to occupy the unit for the life of the corporation
171
A buyer of a NEW condominium can cancel the contract within ____ calendar days of signing the contract.
15 days
172
The buyer of a resale condominium can cancel the contract within ____ business days after the date of execution of the contract
3 days
173
Purchasers of Timeshares and vacation plans may cancel their contract within ____ calendar days of singing the contract.
10 days
174
Interval ownership
Is fee simple ownership and contains the same rights as any other property conveyed by deed.
175
Right-to-use
Grants rights with the rights-to-use forms of the time-sharing that temporary in nature. A lease.
176
Deeds
Conveys the legal titles
177
Wills
Are instruments used to convey title to real and personal property after a person's death.
178
Involuntary Alienation
Example: Foreclosure
179
Descent
Leaves the property of the deceased to legal descendants if they don't have a will.
180
Escheat
Provides for a government, to take the property of an owner; who dies intestate (without a will) and without any known heirs entitled to receive the property.
181
Adverse Possession
Arises when the true owner of a record fails to maintain possession and another seizes the property.
182
Eminent Domain
Give government the right to take land from an owner through a legal process referred to as condemnation, as long as the taking is for public purpose.
183
Condemnation
The process of taking away land from an owner for public use.
184
Actual Notice
Direct knowledge acquired in the course of a transaction.
185
Constructive Notice
Is accomplished by recording the information in the public records.
186
Title Insurance
Owners Policy: (Not transferable) is issued for the total purchase price of the property.
Lenders Policy: (Transferable) Is issued for the unpaid mortgage amount.
187
Habendum Clause
Habendum clause limits the estate or tenancy being conveyed and is entered before or after the restrictions or limitations on the property's use.
188
The Premisies Section of a Deed names...
Parties to the deed and date of the deed.
189
A sesin
Is a promise that the grantor owns the property and has the right to convey title.
190
The Convenant against encumbrances
States that the property is free from liens other encumbrances, except as noted in the deed.
191
Deed Restrictions
Are a part of the deed and affect a particular property.
192
Restrictive Covenants
Are recorded along with subdivision plat and usually affect entire subdivisions
193
Easements
Are rights to use a portion of an owner's (and for a specific purpose)
194
Easement by Prescription
Is created by longtime usage, such as 20 years of open, uninterrupted use.
195
Encroachment
Is the unauthorized use of another's property.
196
Liens
Are a right or legal interest given to creditor or a unit of government to have a debt satisfied out of some specific property belonging to a debtor.
197
Metes & Bounds
Metes=Distance
| Bounds= Direction
198
The beginning reference is
The intersection of a north/south line called a principle meridian and an east/west line called the base line.
199
Township
A square tract of land measuring six miles on each side and including 36 sections formed by the crossing of range and township lines.
Opposite of N is S and the opposite of W is E.
200
The Statues of Frauds
Requires that contracts conveying an interest in real property must be in writing and signed to be enforceable.
201
Statue of Limitations
Designates the period of time during which the terms of a contract may be enforced.
Written Contracts: 5 years
Oral Contracts: 4 Years
202
A Parol Contract is
An oral agreement and informal contract
203
Bilateral Contract
Obligates both parties
204
Unilateral Contract
Obligates only one party
205
Counteroffer indicates
Willingness to contract, but on terms or conditions different from those contained in the original offer. The original offer is dead and cannot be later accepted.
206
Specific Performance
Wronged party may sure to have the courts force the other party to perform as the contract specifically states.
207
Liquidated Damages
The parties will stipulate an amount of money in the contract to be paid in case of the default by the buyer.
208
Rescission
To rescind is to cancel or withdraw the breach and continue the transaction.
209
Compensatory Damages
Suit for damages in addition to liquidated damages; the party bringing the suit seeks an amount of money equal to the extent of the loss suffered.
210
Open Listing
An employment contract given to any number of brokers who work simultaneously to sell the owner's property. Least advantageous to broker.
211
Exclusive-right-of-sale lisitng
Is when the seller gives the listing to a selected broker, who then becomes the exclusive real estate agent of the owner, for the sale of the property, during the time the listing contract is in affect. Most advantageous to broker.
212
Radon gas disclosure
A disclosure statement on. real estate sale and lease contracts that consist only of what radon is.
213
Lead-Based paint
Disclosures of lead-based paint must be given with any home purchased or rented, that was built Pre-1978.
214
Homeowners Association Disclosure
Provides buyers with a disclosure summary regarding the association, the existence of restrictive covenants, and any assessments that the association imposes.
215
Property tax disclosure
Prospective buyers of residential property must be presented a disclosure summary concerning ad-valorem taxes before or at the time of execution of the contract for sale.
216
Lien Theory
The borrower retains title to the property. The lender is protected with a lien on the real property to secure the payment of the mortgage debt.
217
Title Theory
Title to the mortgaged property goes to the mortgagee/lender or a third party.
218
Promissory Note
Legal instrument that represents the evidence of a debt.
219
Mortgage
An instrument that pledges the property as a security for debt. The legal document that represents the lien on the real estate that secures the debt.
220
Hypothecation
Refers to the pledging of the property, as security for payment of a loan, without surrendering possession of the property.
221
Assignment
Ownership of a mortgage is transferred from one company or individual to another.
222
Equity of Redemption
Allows the mortgagor to prevent foreclosures by paying the mortgagee the principal and interest due, plus any expenses the mortgagee has incurred in attempting to collect the debt and initiating foreclosure proceedings.
223
Receivership Clause
Allows a receiver to be appointed to collect income from the property and use the income to make mortgage payments in the event of default.
224
FHA: Federal Housing Administration
FHA insures the loan.
225
VA Loans
Grant the department of Veterans Affairs the authority to partially guarantee mortgage loans made to veterans by private lenders. The guarantee covers the top portion of the loan.
MAX VA guarantee is 104,250 or 25% of the loan. The max loan amount is 417k but if the VA can put 25% down they can borrow a higher loan amount.
226
Loan-Value-ratio
Relationship between amount borrowed and appraised value of a property.
227
Primary Market
Is a market where securities or goods are actually created.
228
Secondary Mortgage
Market is an investor market that buys and sells existing mortgages.
229
Intermediation
Is a process practiced by financial thrift institutions that serve as financial, middleman between depositors and borrowers.
230
Disintermediation
Occurs when funds are withdrawn from intermediary financial institutions, such as banks and saving associations, and are invested in instruments yielding a higher return.
231
Fannie Mae, Freddie Mac & Ginnie Mae
Are secondary market participates that buy up existing mortgages. Bank gives consumer mortgage at 6%, they might sell it to one of these existing at 5% and make a point back quickly. This replenishes funds back into the financial system.
232
Truth-in-lending Act
Informs consumers of exact credit cost before they make a purchase so they make compare various credit terms and costs.
233
Loan Application
The law requires lenders to disclose annual percentage rate of interest and finance charges imposed on consumers within three business days of accepting a loan application.
234
Liquidity
Refers to the ability to sell an investment very quickly without loss of ones capital.
235
Illiquidity
Is the inability to sell an investment quickly, depending on the market.
236
Leverage
Investors use other's money (lender)
237
Equity
Investors use their own money. The difference between what you owe and what it's worth.
238
Positive Leverage
Making money
239
Negative Leverage
Losing money
240
Business enterprise brokers
Normally deal in corporate transactions. The purchase of businesses that provide goods and/ or services.
241
Business opportunity brokers
Typically deal in sale and purchase of smaller businesses.
242
Goodwill
Is the intangible assets attributed to a businesses reputation and the expectation of continued customer loyalty.
243
Going Concern Value
The value of an established business property, compared with the value of just the physical assets of a business that is not yet established, is called the going concern value.
244
Homestead Tax Exemption
Applicants must reside in the home and have legal title to the property as of January 1st to be eligible.
245
Homeowners are entitled to a _____ dollar tax exemption from the assed value of the home for city, county and school board taxes
25,000
246
Homeowners are entitled to an additional ______ dollar exemption from city and county taxes on property assessed value greater than ________ dollars
25,000
| 75,000
247
Widows, legally blind persons and non veterans who are totally and pemanently disabled qualify for a _____ exemption
500
248
Veterans who are 10% disabled receive a _____ exemption
5000
249
The Florida green belt law authorizes county and property appraisers to asses
Agricultural land used for agricultural purposes according to it's current value as agricultural land.
250
The save our homes amendment
Caps how much the assessed value of a homestead property may increase no greater than 3%
251
Property tax certificate
The amount of taxes owed is issued for each delinquent property. They are auctioned to bidders who bid starting at 18% interest rate.
252
IRS allows homeowners to exclude up to
$250,000 of gain realized on the sale of exchange of a principle residence.
253
Authority, Three areas for responsibility for which city planning commissions are usually delegated final authority are
1. Subdivision plat approval
2. Site plan approval
3. Sign control
254
Residential zoning
regulated density or the number of homes per acre
255
Commercial zoning & Industrial zoning
is to regulate intensity of use.
256
A variance
Allows a property owner to vary from strict compliance will all or part of a zoning code because to comply would force an undue hardship on the property owner.
257
Which clause promises the grantor owns the property and has the right to convey title?
Seizen
